EDO Edo Corp

EDO Corporation (NYSE: EDO) has acquired NexGen Communications LLC, a privately-held company specializing in the design and production of communications systems for a diverse set of U.S. government organizations. NexGen is an engineering-driven company focused on developing innovative, rapid-response solutions. The transaction closed on December 20 and is the third acquisition completed in 2005. "This acquisition further strengthens our fast-growing position in specialized communications products for the military and intelligence communities," said EDO Chief Executive Officer James M. Smith. "Earlier in 2005 we acquired EVI Technology LLC, which provides similar products to these communities. With the synergies that are developing as part of EDO Corporation, revenue from the now-combined EVI and NexGen operations is expected to grow to approximately $45 million in 2006." In addition to NexGen and EVI Technology, EDO in 2005 acquired Fiber Innovations, Inc., a privately-held company based in Walpole, Mass. The combined 2006 revenue of approximately $60 million expected from these three acquisitions represents growth of approximately 20 percent from 2005 levels. Fiber Innovations develops and manufactures composite structures for aerospace, defense, and commercial customers. As a leader in the specialty processes of braiding, resin transfer molding, and vacuum-assisted resin transfer molding, it has perfected one of the most practical and effective manufacturing methods available to the composite industry today. This adds important complementary design and manufacturing capabilities to EDO's integrated-composite-structures business. EDO Corporation designs and manufactures a diverse range of products for the defense industry and commercial markets, and provides related engineering and professional services. Major product groups include: Defense Electronics, Communications, Aircraft Armament, Undersea Warfare, and Integrated Composite Structures. EDO's advanced systems are at the core of the transformation to lighter, faster, and smarter defense capabilities. EDO (www.edocorp.com) was founded in 1925 and is headquartered in New York City. The company employs 2,800 people and had revenues of $536 million in 2004. Financial results for fiscal 2005 are expected to be released on February 23. Forward-Looking Statements Certain statements made in this release, including statements about future revenue and revenue growth, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the company's products and services, product mix, the timing of customer orders and deliveries, the impact of competitive products and services and pricing, and other risks discussed from time to time in the company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.